Jun. 16 at 8:43 PM
S&P Global Ratings affirmed Algoma Steel's 'CCC+' issuer credit rating and revised the outlook to stable from developing, while also affirming the company's 'B-' rating on its senior secured second-lien notes due 2029.
S&P said the Canadian steelmaker continues to face challenging market conditions due to 50% U.S. tariffs on Canadian steel imports and domestic oversupply. The agency expects Algoma to post negative EBITDA of approximately C
$185 million in 2026, following adjusted EBITDA of about negative C
$450 million over the 12 months ended March 31, 2026. Algoma permanently shut down its blast furnace operations in January 2026.
Despite these pressures, S&P believes Algoma has sufficient liquidity, supported by working capital releases and expected tax refunds, alongside available credit facilities and government-backed loans. The agency expects the company's transition to electric arc furnace production to drive a return to positive EBITDA in 2027.
$ASTL